Appendix 7. Valuation of outcomes

1.1 Increased self-esteem

$10,830 (100% of the outcome)

Cost of participating in a netball team

Revealed preference -Young people increase their self-esteem through taking part in a team activity where peers support each other and coaches become mentors

• Yearly cost of netball (membership, 48 games per year, 2 additional interstate games, prizes/sponsorship)
• This value was proportionately applied to each indicator, with each year young people experienced outcomes in the program worth 20% of the total financial proxy value (e.g. if in the program for one year, experience 20% of total financial proxy value which equals $2,166)

Alice Springs Netball Association Elite Indigenous Travel and Accommodation Assistance Program

1.2 Increased engagement in meaningful activity

$33,786 (20% of total value for each year in the program)

Cost of boarding school fees

Revealed preference - For many young people involved in Drum Atweme, attending boarding school through receiving a scholarship is a key way of continuing at school and attain better qualifications

• Total cost of boarding school fees (tuition, accommodation and food) for one year, based on a school in South Australia
• This value was proportionately applied to each indicator, with each year young people experienced outcomes in the program worth 20% of the total financial proxy value (e.g. if in the program for one year, experience 20% of total financial proxy value which equals $6,757).

Loreto College, Marryatvile, South Australia

1.3 More positive connections to others

$14,140 (100% of outcome)

Total cost of attending an indigenous leadership program (flights, accommodation and food)

Revealed preference - A leadership program is an alternative way of developing more positive connections with others, particularly in becoming a role model to others

• Based on Certificate IV in Indigenous Leadership (12 month program, no tuition fees charged but equivalent to Certificate IV TAFE course fee, assume held in major population centre, participants cover their travel and accommodation)
• This value was proportionately applied to each indicator, with each year young people experienced outcomes in the program worth 20% of the total financial proxy value (e.g. if in the program for one year, experience 20% of total financial proxy value which equals $2,828).

Australian Indigenous Leadership Centre

1.4 Avoidance of unlawful behaviour

$19,081 (100% of outcome)

Difference between annual Newstart allowance and minimum wage

Revealed preference -Young people are able to avoid reputational damage and deterioration of skills, which would have prevented them from being able to get a job

• The value of the minimum wage was determined, which amounts to $622 a week
• Multiplying the minimum wage per week by 52 weeks a year, the value of the minimum wage is calculated as $32,354 per annum
• Next, the value of the Newstart allowance was determined, based on the maximum amount that could be obtained for a single with no children. This amounted to $13,273 per annum
• The difference between these two amounts was then calculated, which amounted to $19,081
• This value was proportionately applied to each indicator, with each year young people experienced outcomes in the program worth 20% of the total financial proxy value (e.g. if in the program for one year, experience 20% of total financial proxy value which equals $3,816).

Fair Work Ombudsman DHS

2.1 Increased engagement in meaningful activity

$720

Annual fee for regular music lessons

Revealed preference - For young people in the school group, another meaningful activity would be engaging music lessons

• Tuition fee for 4 terms of music program at an NT high school

St Philips College in Alice Springs

3.1 Offer more relevant, engaging curriculum

$62,017

Salary of a music teacher working one day per week for five years

Revealed preference - The opportunity to offer a more relevant, engaging curriculum through having Drum Atweme in the school is similar to that of hiring a music teacher

• Annual salary of entry level classroom teacher in NT on 0.2FTE load

Office of the Commissioner for Public Employment NT

4.1 Receive material support

$800

Average amount of material support received per family during investment period through food and essential items purchased for their children

Cash transaction - The material support that families receive through food and essential items purchased for their children means that families avoid the costs of purchasing these goods themselves.

• Drum Atweme spends around $100/week on food and other essential items for performers, for 48 weeks per year, totalling $4,800.
• Around 30 families are assisted each year.

Stakeholder interviews SVA analysis

4.2 More positive perceptions and expectations of their children

Not possible to value

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4.3 Pass down knowledge, stories and culture

$5,000

Cost of trips out bush during investment period to connect young people with culture

Revealed preference - The opportunity to pass down knowledge, stories and culture is similar to taking young people out bush to connect with culture

• Estimate of the cost of running a Ingkenteme (Bush school) for around 10 young people for one weekend.

SVA analysis

5.1 More opportunities to experience Aboriginal culture

$1,000

Value of a community grant from the Alice Springs Town Council to access the Araluen Arts Centre

Revealed preference - To give the community more opportunities to experience culture, the Alice Springs Town Council provides grants for community groups to perform

• Maximum amount available for the Araluen Community Access Grant

Stakeholder interviews and Alice Springs Town Council

5.2 Local businesses earn more income from tourists

$2,000

Average of the price conference organisers and tour group operators are willing to pay for one opportunity to experience Aboriginal culture

Revealed preference -Conference organisers and tour group operators on average charge a mark-up on the Drum Atweme performance fee of $1000 as part of their conference/tour packages. Note that this will be conservative, as it does not take into account the spending of tourists in Alice Springs as this cannot be estimated.

• During stakeholder interviews, the average of conference organiser willingness to pay ($5000) and tour groups willingness to pay (based on performance fee $500 plus value of donated goods offered to performers $200) was discussed.
• Conservatively, we estimate that the average mark-up per conference/tour is $1000.

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5.3 Improved perceptions of Aboriginal young people

Not possible to value

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6.1 Decrease in number of young people with anti-social behaviour

$16,619

Additional cost of policing to monitor anti-social behaviours of young people in the community for five years (maximum value)

Resource reallocation -Time reallocated towards other activities, as a result of decreased need in the community to patrol at night and maintain safety

• The additional cost of policing was calculated by first determining the average annual base wage for a Constable Level 3 in the New South Wales Police Force, being $68,414 per annum
• An assumption was made, based on police data, that a police officers would work an average of 38 hours per week, which amounts to an average hourly wage of $34.62
• Next, the percentage of time dedicated to policing "anti-social behaviour" on the street per annum was determined. To do this, it was assumed that one incident per month occurred (12 incidents per annum), which took 4 hours to resolve and required 2 police officers to address.
• To determine the value of time dedicated to policing "anti-social behaviour", the police officer's hourly wage ($34.62) was multiplied by 96 (being 12 x 4 x 2) which amounted to a total of $3,324.
• This value represents the value of time that could be reallocated from policing one anti-social young person in one year. This value was proportionately applied to each indicator, with each year young people experienced outcomes in the program increasing the value of resources that could be reallocated. For young people experiencing outcomes in the program for 5 years, the value is $16,919.

NSW Police

6.2 Decrease in number of young people offending

$25,900

Average costs to the justice system per young person offending (excluding costs associated with policing antisocial behaviour) for five years (maximum value)

Resource reallocation -Aggregate of police costs, court costs and juvenile justice costs which are all costs incurred when a young person offends.

This proxy was broken down into three streams of costs: police costs, court costs and Juvenile Justice costs

Police costs

• The cost of policing was calculated by first determining the average annual base wage for a Constable Level 3 in the New South Wales Police Force, being $68,414 per annum
• An assumption was made, based on police data, that a police officers would work an average of 38 hours per week, which amounts to an average hourly wage of $34.62
• An assumption was made that the three main areas of police investigation time would be: (1) picking up young people, interviewing them, filling out paperwork (2) youth justice restorative processes (3) allocating a youth justice worker for community service supervision
• It was assumed that the average time taken to carry out these activities would be: (1) 4 hours (2) 8 hours (3) 5 hours
• Using the average hourly wage, it was determined that the cost of policing would be (1) $138 (2) 277 (3) 173, amounting to a total cost of police time of $589

Court costs

• The average net expenditure per finalisation of a matter in Australian local courts ($404) and District Courts ($4915) was averaged, amounting to $2,660 Juvenile Justice costs
• The daily cost of supervision of a juvenile offender in the community was determined to be $23
• It was assumed, based on AIHW Youth Justice data, that the average number of days spent supervising a juvenile offender is 84 days
• This amounted to total Juvenile Justice costs of $1,932.

This amounted to a total cost to the justice system per young person per annum of $5,180.

This value was proportionately applied to each indicator, with each year young people experienced outcomes in the program increasing the value of resources that could be reallocated. For young people experiencing outcomes in the program for 5 years, the value is $25,900.

NSW Police Force website, report on Courts and Tribunal Services by NSW Government - Police & Justice Lawlink

6.3 Decrease in number of young people in detention

$175,140

Average costs to the justice system per young person being detained for five years (maximum value)

Resource reallocation - Government can reallocate funding for juvenile justice as a result of participants in the program being supported by the program

Average cost of detention

• The average cost of detention per young person was calculated based on the median duration of detention (days) and the total cost of detention per detainee per day
• The median duration of detention was determined, based on AIHW Youth Justice data, to be 63 days and the total cost per detainee per day was calculated as $556, based on Juvenile Justice data
• This amounted to an average cost of detention per young person as $35,028.
• This value was proportionately applied to each indicator, with each year young people experienced outcomes in the program increasing the value of resources that could be reallocated. For young people experiencing outcomes in the program for 5 years, the value is $175,140.

NSW Police Force website, report on Courts and Tribunal Services by NSW Government - Police & Justice Lawlink